Financial Literacy: Unit 3 – Financial Planning and Budgeting

Flashcards for BCOM202 Financial Literacy, Unit 3 - Financial Planning and Budgeting

Natural Resources

Raw materials provided by nature, such as oil, minerals, and nutrients.

Human Resources

Individuals who engage in manufacturing activities through intelligence or physical effort.

Capital Resources

Assets and money used to create goods and services, including buildings, equipment, and supplies.

Economic Reasoning

The process of considering costs and benefits, goals and needs, rewards and penalties before making a decision.

Financial Planning

A systematic approach to accomplishing one's life goals by managing income, expenses, and investments.

Asset Management

Managing investments on behalf of a customer, including selecting stocks, bonds, and mutual funds.

Personal Financial Planning

A methodical approach to maximizing one's existing financial resources through smart financial planning.

Retirement Planning

Ensuring a continuous flow of income after retirement through savings and investments.

Wants

Desires that are backed by money and willingness to purchase.

Human Wants

Goals that people strive towards in order to be satisfied; natural desires that must be satisfied.

Economic Wants

Desires that necessitate human involvement in economic activities and earning money to satisfy them.

Necessities

Basic human requirements for living and surviving, such as food, clothing, and shelter.

Comforts

Goods that make life more enjoyable and pleasant.

Luxuries

Items that provide pleasure and social status but are not required for survival or comfort.

Self-production

Meeting needs and wants entirely through one's own efforts without assistance from others.

Barter system

Exchanging surplus output for goods produced by others.

Commercial trade

Purchasing and consuming goods and services using money.

Coercion

Using force to meet needs.